Over 20 lakh passengers are projected to travel in new Udan flights in FY26 with upgrades to airports and the opening of new routes. The Finance Ministry has allocated ₹540 crore in the FY26 Budget for revival of airports and viability gap funding to support the regional air connectivity scheme (RCS).
According to the outcome Budget document, the Civil Aviation Ministry is targeting revival of 13 airports, heliports and water aerodromes in FY 26. This would include four such facilities in the North-Eastern States.
The Ministry is aiming for commencement of 100 new RCS routes and 40,000 flights under the scheme in FY26. The scheme will improve air connectivity in the North-East States, and the Ministry expects four new destinations in the region to be linked with air services.
An official said targets mentioned in the Budget reflect the Ministry’s intent. Prime Minister Narendra Modi flagged off the first Udan flight between Shimla and Delhi in April 2017. Over the past seven years, 1.5 crore passengers have flown on Udan routes. The scheme connected 88 airports and operationalised 619 routes.
On Saturday, Finance Minister Nirmala Sitharaman announced a modified Udan scheme to enhance regional connectivity to 120 new destinations.
FOCUS ON N-E
The scheme will have a focus on hilly areas and the North- East. Over 4 crore passengers are expected to travel under the scheme in the next 10 years, Sitharaman said.
Under the ongoing scheme, a selected airline receives viability gap funding for a route for three years and is required to offer confessional fares to passengers. However, there are instances of airlines closing routes or suspending operations within three years of launch.
An industry expert said selection of operators could be be made more stringent. An evaluation system needs to be put in place to ensure viability of routes before its award, he said.
